2014/15 adopted annual budget - moorabool shire council · 2016. 8. 15. · 2014/15 adopted annual...
TRANSCRIPT
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Moorabool Shire Council
Out in the Country… Close to the World
2014/15 Adopted
Annual Budget
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Contents Page
Mayor’s introduction 3
Chief Executive Officer’s summary 8
Budget processes 13
Overview
1. Linkage to the Council Plan 14
2. Activities, initiatives and service performance indicators 19
3. Budget influences 27
Budget analysis
4. Analysis of operating budget 31
5. Analysis of budgeted cash position 39
6. Analysis of capital budget 42
7. Analysis of budgeted financial position 47
Long term strategies
8. Strategic resource plan and financial performance indicators 50
9. Rating information 54
10. Other strategies 58
Appendices
A Budgeted statements 62
B Rates and charges 69
C Capital works program 81
D Fees and charges schedule 91
Moorabool Shire Council 2 2014/15 Budget
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Mayor’s introduction
It gives me great pleasure to present this Budget to the community of Moorabool Shire Council. We are
planning to increase total rate revenue by 5.0 percent in the 2014/15 financial year. This level allows us to
maintain existing service levels, fund a number of new initiatives and continue to allocate additional funds to
renew the Shire's infrastructure.
The rate increase has been kept below the level foreshadowed in Council's Strategic Resource Plan, despite
a number of significant budget impacts most notably recent announcements in the 2014 Federal Budget
which will have a major impact on current and future Council budgets.
As part of the 2014 Federal budget, Council will be adversely impacted by the Federal Governments’
intention to “pause” the indexation of Federal Assistance Grants to local government. Additionally, these
grants will no longer be paid in advance of the 2014/15 year resulting in a “double whammy” impact on
current and future years budgets. Federal assistance grants are a vital source of funding for the local
government sector and assist the Council in funding the provision of vital services to the community. Under
these measures, the annual appropriations that Council receives from the Victorian Grants Commission will
likely not increase for the next 3 years notwithstanding CPI increases and strong population growth, which
will continue to impact the annual budget. Under other measures recently announced, the re-introduction of
fuel excise indexation will progressively and increasingly impact future budgets and the increasing of top
marginal tax rates for individuals will have a flow on impact for fringe benefits tax which will also rise in future
years.
Notwithstanding this, I am pleased to announce that Council will undertake a significant Capital Works
program for 2014/15 totalling $9.637 million for progression of major projects and funding of capital renewal
and upgrade projects.
A $5.477 million asset renewal program forms a significant part of the capital works budget, with $3.764
million being spent on sealed road rehabilitation, $0.988 million on unsealed roads and shoulders, $0.382
million on kerb replacement, $0.390 million on bridges and $0.220 million on buildings. Further to this, $4.160
million has been allocated to new and upgrade capital projects to be implemented across the municipality.
It is very important to note that 2014/15 Capital Works budget will mark the commencement of two major
infrastructure projects namely funding to progress the design of an unconstructed section of Halletts Way at
Bacchus Marsh along with the Darley Early Years Hub.
The Halletts Way design comprises the section from Bacchus Marsh Road to the West Maddingley estate
including a bridge over Werribee River. This is the critical first step to enable the estimated $10.000 million
construction to be funded and procured in subsequent years. It also complements the recent announcement
by the State Government to fund freeway ramps at Halletts Way, along with a proposal to construct the
northern section at Darley for which Council has previously allocated funds. The Darley Early Years Hub
design will incorporate a new facility to cater for the growing needs of the community and will enable the
estimated $4.600 million facility to be funded and constructed in subsequent years. Both of these projects are
multi-year projects and demonstrate the Council’s focus on delivering improved amenities and infrastructure
for a growing population.
Some of the key projects proposed as part of the 2014/15 Capital Program include:
Halletts Way Construction Southern Section ($1.750 million – funding staged over multiple years)
Moon Reserve - New Toilet Facility ($0.150 million)
Elaine-Morrisons Road - Rehabilitation and Safety Improvements ($0.820 million)
Blakeville Road - Rehabilitation ($0.675 million)
Spargo Creek Road - Rehabilitation and Widening ($0.559 million)
Holts Lane - Rehabilitation and Widening ($0.420 million)
Detailed design of the Darley Early Years Hub ($0.400 million)
Moorabool Shire Council 3 2014/15 Budget
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Spencer Road - Rehabilitation ($0.350 million)
McFarland Street - Replacement of Kerb and Channel ($0.310 million)
Lees Road - Replacement of Bridge ($0.250 million)
Spargo Creek Road - Bridge Repair Works ($0.140 million)
Gordon Tennis Court Reconstruction ($0.137 million)
Ballan Mechanics Institute Improvements ($0.090 million)
Bungaree Recreation Reserve – Irrigation Works ($0.090 million)
Maddingley Park - Restoration of Soldiers Memorial Gates ($0.073 million)
In addition to the planned Capital Works Program, the 2014/15 Annual Budget is proposing to fund a number
of new initiatives being:
Planning for the future of our Small Towns ($0.075 million in 2014/15 - $0.150 million over 2 years)
Bacchus Marsh Urban Growth Strategy ($0.050 million)
Expansion of Maternal and Child Health Service ($0.042 million)
Moorabool Environmental Strategy ($0.037 million)
Upgrade of Councils Customer Request Management System ($0.035 million)
Expansion of Home and Community Care Services ($0.033 million)
Expansion of Youth Services ($0.026 million)
Multi-Purpose Youth Facility Feasibility Study ($0.020 million)
Ballan Early Years Facility Feasibility Study ($0.010 million)
In total, the Council will invest $0.685 million in new service initiatives across service areas.
For 2014/15, the community will see a significant improvement in the long term financial sustainability of the
Council. In a difficult economic environment, this Council will oversee a significant improvement in a number
of financial performance measures which will provide a significant long term benefit to the community in the
form of improved infrastructure and expanded services.
As an indication of the extent to which Council has driven efficiency and cost savings over the last 2 years, a
table has been presented below to show the increase in expenditure on materials and consumables over the
last 3 years. Expenditure on ‘materials and consumables’ are to a large degree “discretionary” in nature and
provide a good guide as to the level of rigour involved in setting the budget;
The above table indicates that a high level of rigour has been placed on cost control in the 2014/15 budget as
indicated by the fact that discretionary expenditures are at similar levels to the 2012/13 budget. This result
has been achieved in spite of the twin pressures of CPI and population growth which are predicted to
increase at around 3% and 2.5% respectively. Additionally, this result has been achieved whilst at the same
time accommodating $0.685M in new initiatives for the benefit of the community.
Moorabool Shire Council 4 2014/15 Budget
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Council success in cost containment has in turn resulted in a significant improvement in the underlying
deficit. The underlying deficit is a measure of financial sustainability and Council’s ability to achieve its
service delivery objectives as it is not impacted by capital income items which can often mask the operating
result. The adjusted underlying result for the 2014/15 year is a deficit of $1.983 million which is a decrease of
$1.856 million from the 2013/14 year. In calculating the adjusted underlying result, Council has excluded
grants received for capital purposes which are non-recurrent and capital contributions from other sources.
Contributions of non-monetary assets are excluded as the value of assets assumed by Council is dependent
on the level of development activity each year.
Adjusted Underlying surplus / -deficit $M
Notwithstanding the challenges of population growth, increases in CPI and a difficult economic environment
where government funding has and will continue to remain flat, the Council is able to demonstrate an
improvement in its underlying deficit demonstrates a key focus on ensuring the ongoing sustainability and
viability of the Shire. Whilst further effort is required, Council is able to demonstrate it is on the right track.
As a result of the continued improvement in the Shires finances, the community will ultimately benefit by way
of increases in the levels of services and infrastructure going forward. The table below provides a high level
snapshot of the forward outlook for Capital Works for the next 4 years and demonstrates a significant
increase in the investment in community infrastructure and assets;
Forward outlook for Capital Works $M
The increases in future capital works programs are needed to reflect the continued expansion in the Shires
population in addition to meeting the communities growing expectations.
12.6811.79
9.64
17.39
15.01
9.84
0.0
5.0
10.0
15.0
20.0
A2012/13 F2013/14 B2014/15 SRP2015/16 SRP2016/17 SRP2017/18
capi
tal w
orks
$M
Moorabool Shire Council 5 2014/15 Budget
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Rating Strategy review
Council has also undertaken an extensive review of its existing rating strategy and adopted the Proposed
Rating Strategy at an ordinary meeting of Council on the 21st May 2014. The adoption of the Rating Strategy
was the culmination of a 10 month process which included extensive research, workshops with Council and
an extensive consultation process with the community and special interest groups. Further information is
provided in the document which provides a greater level of detail relating to the Rating Strategy review.
As mentioned previously, Council rates will increase by 5.0%. 2014/15 is a municipal revaluation year, which
means that all properties in the Shire are subject to revaluation. Importantly, the rate increase of 5.00% is an
average across all rate categories, however due to the revaluation, actual rate increases will vary from this.
In adopting the Rating Strategy, Council considered a variety of factors and influences in making its decision.
Council also consulted with the community in great depth. In adopting the final Rating Strategy, the Council
decided to vary slightly the 2013/14 Rating Strategy by reducing the rating differential for Farm properties
from 0.8 times the general rate to 0.78 times the general rate. This means that for 2014/15 an average farm
property’s rates will increase by 1.79% (it would have increased by 4.03% if the differential remained
unchanged). To offset this reduction, the average residential property’s rates will increase by 5.10% (it would
have increased by 4.72% if the farm rate remained unchanged).
To offset the rate increases, Waste Service charges will remain unchanged in 2014/15, notwithstanding a
significant increase in the State Landfill levy. Overall waste service charges will remain unchanged at
$267.00 even though the State Landfill levy (which is a separate component of the overall waste service
charges) will increase by $9.00. Even though the state landfill levy will increase, the Council has made a
concerted effort to ensure that waste service charges do not increase overall. This is a good outcome for the
community and means that on average, overall Rates and Charges will increase at a rate lower than 5%.
Further details are provided in latter section of this document.
When the Council Rate Notice is issued for the 2014/15 year, it will also include the costs of the Fire Services
Levy that Council is collecting on behalf of the State Government. This will be the 2nd year that the scheme
will be in place. It is anticipated that the funding Council receives to administer the Fire Service levy will
reduce resulting in an increase administrative burden on Council.
It is disappointing to note that in recent years Moorabool Shire is increasingly being subjected to the role of
tax collector for other tiers of government as is shown by the Fire Services levy. Equally, it is disappointing
that Council is required to embed in its waste charges the increasing costs of the State landfill levy in addition
to the additional burden of increased government regulation. As an extension to this, the proposals
announced in the Federal Budget 2014 will further compound some of the inherent inequities that are
imposed on our Shire.
Council will continue to advocate for fairness and equity in its dealings with both the State and Federal
Governments to ensure that the concerns and needs of Moorabool residents are understood. Council is
currently advocating on a number of key strategic projects including;
Western bypass for Bacchus Marsh (Halletts Way extension)
Eastern bypass for Bacchus Marsh
Parwan Employment Precinct Study
Economic Development Study
Sewerage for our small towns
Bacchus Marsh Indoor Aquatic Centre
Sports Facilities for our growing communities
Moorabool Shire Council 6 2014/15 Budget
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In summary, I am pleased to present the 2014/15 Budget to the residents of Moorabool. This budget
represent a significant improvement in the future outlook for the Shire notwithstanding a difficult economic
environment. It will deliver increased level of services and infrastructure based on a rate increase that the
Council has assessed as being financially responsible.
Council also has a long term financial plan which plans for the long term sustainability of the Moorabool Shire
Council, and this budget has been developed in line with the parameters established in that plan.
We acknowledge the contribution of State and Federal Governments in our Capital Works and service
delivery programs.
Cr Paul Tatchell
Mayor
Moorabool Shire Council 7 2014/15 Budget
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Chief Executive Officer’s summary
Council has prepared a Budget for the 2014/15 financial year which seeks to balance the demand for
services and infrastructure with the community’s capacity to pay. Key budget information is provided below
about the rate increase, operating result, services, cash and investments, capital works, financial position,
financial sustainability and strategic objectives of the Council.
1. Rates
A = Actual F = Forecast B = Budget SRP = Strategic Resource Plan estimates
It is proposed that general rates increase by 5.0% for the 2014/15 year, raising total rates of $27.959 million,
including $0.408 million generated from supplementary rates. Of the 5.0% increase, 1.9% will be used to
fund $0.685 million of new initiatives. The remaining 3.1% increase will go toward capital works to address
the asset renewal needs of the Shire. (The rate increase for the 2013/14 year was 5.5%).
2. Operating result
The expected operating result for the 2014/15 year is a surplus of $4.695 million, which is a decrease of
$0.676 million from 2013/14. The adjusted underlying result, which excludes items such as non-recurrent
capital grants and non-cash contributions is a deficit of $1.983 million, which is a decrease of $1.856 million
over 2013/14 - refer to section 7 of this summary for further information. (The forecast operating result for
the 2013/14 year is a surplus of $5.371 million).
7.75
5.37 4.69
6.30 4.79
7.86
0.0
2.0
4.0
6.0
8.0
10.0
A2012/13 F2013/14 B2014/15 SRP2015/16 SRP2016/17 SRP2017/18
Sur
plus
/ -
defic
it $M
6.0 5.5
5.0
6.0 6.0 6.0
0.0
2.0
4.0
6.0
8.0
10.0
A2012/13 F2013/14 B2014/15 SRP2015/16 SRP2016/17 SRP2017/18
% r
ate
incr
ease
Moorabool Shire Council 8 2014/15 Budget
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3. Services
The net cost of services delivered to the community for the 2014/15 year is expected to be $20.979 million
which is a decrease of $0.041 million from 2013/14. A key influencing factor in the development of the
2014/15 budget has been the continuing focus on delivering operational efficiencies whilst maintaining an
appropriate level of service delivery, notwithstanding continuing population growth. To this end, significant
effort has been expended on ensuring operating budgets are justifiable and financially responsible taking into
account the demand of population growth, the rising cost of goods and services against the backdrop of a
continuing tough external economic environment. For the 2014/15 year, service levels have been maintained
and a number of initiatives proposed. (The forecast net cost for the 2013/14 year is $21.020 million).
4. Cash and investments
Cash and investments are expected to decrease by $0.283 million during the year to $10.576 million as at 30
June 2015. The reduction in cash and investments is in line with Council's Strategic Resource Plan. (Cash
and investments are forecast to be $10.859 million as at 30 June 2014).
22.53 21.02 20.98 21.63
23.25 24.79
0.0
10.0
20.0
30.0
A2012/13 F2013/14 B2014/15 SRP2015/16 SRP2016/17 SRP2017/18
net c
ost $
M
11.27 10.86 10.58 10.18 10.92
11.67
0.0
5.0
10.0
15.0
A2012/13 F2013/14 B2014/15 SRP2015/16 SRP2016/17 SRP2017/18
cash
on
hand
$M
Moorabool Shire Council 9 2014/15 Budget
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5. Capital works
The capital works program for the 2014/15 year is expected to be $9.637 million. Of the $9.637 million of
capital funding required, $2.893 million will come from external grants, $1.000 million from borrowings, and
the balance of $5.744 million from Council cash. The Council cash amount includes asset sales of $0.207
million. The capital expenditure program has been set and prioritised based on a rigorous process of
consultation that has enabled Council to assess needs and develop sound business cases for each project.
(Capital works is forecast to be $11.795 million for the 2013/14 year).
6. Financial position
The financial position is expected to improve with net assets (net worth) to increase by $4.695 million to
$493.548 million, and net current assets (working capital) will increase by $0.575 million to $5.285 million as
at 30 June 2015. (Total equity is forecast to be $488.853 million as at 30 June 2014).
12.68 11.79
9.64
17.39
15.01
9.84
0.0
5.0
10.0
15.0
20.0
A2012/13 F2013/14 B2014/15 SRP2015/16 SRP2016/17 SRP2017/18
capi
tal w
orks
$M
484.03 488.85 493.55
554.14 558.93 571.47
0
200
400
600
A2012/13 F2013/14 B2014/15 SRP2015/16 SRP2016/17 SRP2017/18
wor
king
cap
ital $
M
Moorabool Shire Council 10 2014/15 Budget
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7. Financial sustainability
A high level Strategic Resource Plan for the years 2014/15 to 2017/18 has been developed to assist Council
in adopting a budget within a longer term prudent financial framework. The key objective of the Plan is
financial sustainability in the medium to long term, while still achieving the Council’s strategic objectives as
specified in the Council Plan. The adjusted underlying result, which is a measure of financial sustainability,
shows a decreasing deficit over the four year period. This represents a significant overall improvement in the
long term sustainability of Moorabool Shire Council.
8. Strategic objectives
The Annual Budget includes a range of services and initiatives to be funded that will contribute to achieving
the strategic objectives specified in the Council Plan. The above graph shows the level of funding allocated in
the budget to achieve the strategic objectives as set out in the Council Plan for the 2014/15 year.
-5.38
-3.84
-1.98
-0.23 -0.38
0.55
-6
-4
-2
0
A2012/13 F2013/14 B2014/15 SRP2015/16 SRP2016/17 SRP2017/18
adju
sted
und
erly
ing
surp
lus
/ -de
ficit
$M
4.4 5.8
6.8
4.4 5.0
8.5
0.000
4.000
8.000
12.000
16.000
20.000
Representation and Leadershipof our Community
Community Wellbeing Enhanced Infrastructure andNatural and Built Environment
net c
ost $
M
2013/14 2014/15
Moorabool Shire Council 11 2014/15 Budget
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9. Council expenditure allocations
The above chart provides an indication of how Council allocates its expenditure across the main services that
it delivers. It shows how much is allocated to each service area for every $100 that Council spends.
This budget has been developed through a rigorous process of consultation and review and management
endorses it as financially responsible. More detailed budget information is available throughout this
document.
Rob Croxford
Chief Executive Officer
Local Laws, Fire Prev. & Emergency Serv.
$3.65 Parks and Recreation
$11.15
Arts, Culture & Library $4.38
Planning and Building $7.12
Property and Facilities $3.97
Family and Health Services $7.83
Infrastructure Maintenance $12.71 Aged Services $8.42
Waste and Environment $13.22
Capital Works $27.55
Moorabool Shire Council 12 2014/15 Budget
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Budget processes
Budget process Timing
1. Officers update Council's long term financial projections Dec/Jan
2. Officers prepare operating and capital budgets Jan/Feb
3. Councillors consider draft budgets at informal briefings Mar/Apr
4. Proposed budget submitted to Council for approval 21 May
5. Public notice advising intention to adopt budget 22 May
6. Budget available for public inspection and comment 27 May
7. Public submission process undertaken May/Jun
8. Submissions period closes (28 days) 24 Jun
9. Submissions considered by Council/Committee 9 Jul
10. Budget and submissions presented to Council for adoption 16 Jul
11. Copy of adopted budget submitted to the Minister 21 Jul
The final step is for Council to adopt the Budget after receiving and considering any submissions from
interested parties. The Budget is required to be adopted and a copy submitted to the Minister by 31 August
each year. The key dates for the Budget process are summarised below:
This section lists the budget processes to be undertaken in order to adopt the Budget in accordance with the
Local Government Act 1989 (the Act) and Local Government (Planning and Reporting) Regulations 2014
(the Regulations).
In advance of preparing the budget, Officers firstly review and update Council's long term financial
projections. Financial projections for at least four years are ultimately included in Council's Strategic
Resource Plan, which is the key medium-term financial plan produced by Council on a rolling basis. The
preparation of the budget, within this broader context, begins with Officers preparing the operating and capital
components of the annual budget during January and February. A draft consolidated budget is then
prepared and various iterations are considered by Council at informal briefings during March and April. A
‘proposed’ budget is prepared in accordance with the Act and submitted to Council in May for approval ’in
principle’. Council is then required to give ’public notice’ that it intends to ’adopt’ the budget. It must give 28
days notice of its intention to adopt the proposed budget and make the budget available for inspection at its
offices and on its web site. A person has a right to make a submission on any proposal contained in the
budget and any submission must be considered before adoption of the budget by Council.
To assist interested persons to understand the budget and make a submission if they wish, Council officers
undertake a community engagement process including utilising the new online community engagement tool.
Information will also be distributed via the local media.
Under the Act, Council is required to prepare and adopt an annual budget for each financial year. The budget
is required to include certain information about the rates and charges that Council intends to levy as well as a
range of other information required by the Regulations which support the Act.
The 2014/15 budget, which is included in this report, is for the year 1 July 2014 to 30 June 2015 and is
prepared in accordance with the Act and Regulations. The budget includes financial statements being a
budgeted Comprehensive Income Statement, Balance Sheet, Statement of Changes in Equity, Statement of
Cash Flows and Statement of Capital Works. These statements have been prepared for the year ended 30
June 2015 in accordance with the Act and Regulations, and consistent with the annual financial statements
which are prepared in accordance with Australian Accounting Standards. The budget also includes
information about the rates and charges to be levied, the capital works program to be undertaken, the human
resources required, and other financial information Council requires in order to make an informed decision
about the adoption of the budget.
Moorabool Shire Council 13 2014/15 Budget
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1. Linkage to the Council Plan
1.1 Planning and accountability framework
This section describes how the Annual Budget links to the achievement of the Council Plan within
an overall planning framework. This framework guides the Council in identifying community needs
and aspirations over the long term (Moorabool 2041), medium term (Council Plan) and short term
(Annual Budget) and then holding itself accountable (Audited Statements).
The Strategic Resource Plan, included in the Council Plan, summarises the financial and non-financial
impacts of the objectives and strategies and determines the sustainability of these objectives and strategies.
The Annual Budget is then framed within the Strategic Resource Plan, taking into account the services and
initiatives included in the Annual Budget which contribute to achieving the strategic objectives specified in
the Council Plan. The diagram below depicts the planning and accountability framework that applies to local
government in Victoria.
In addition to the above, Council has a long term plan (Moorabool 2041) which articulates a community
vision, mission and values. The Council Plan is prepared with reference to Council's long term Community
Plan.
The timing of each component of the planning framework is critical to the successful achievement of the
planned outcomes. The Council Plan, including the Strategic Resource Plan, is required to be completed by
30 June following a general election and is reviewed each year in advance of the commencement of the
Annual Budget process.
Source: Department of Transport, Planning and Local Infrastructure
Moorabool Shire Council 14 2014/15 Budget
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1.2 Our purpose
Our mission
Our values
Strategic Objective Description
1. Representation and
Leadership of our
Community
In representing and leading our community, Council will continue to improve its
understanding of community needs. We will listen and recognise the diversity of
expectations and priorities across Moorabool, whether in urban centres, small
towns and hamlets, or rural areas. In building these relationships, we will
communicate effectively and provide fair representation.
Council will build mutually beneficial partnerships with federal and state
governments, municipalities in our region and other key agencies to gain
acknowledgement, respect, understanding and support for the needs of its
communities.
As a Shire we are well placed geographically being in close proximity to
Melbourne’s western suburbs, Geelong, Ballarat and, to a lesser degree,
Bendigo. Our future planning needs to take account of key transport linkages and
our local land use planning in reference to these regional and capital centres.
We will advocate strongly for the resources, infrastructure and strategies required
to sustain a quality future for Moorabool. We will identify the key advocacy issues
in engagement with the community.
We recognise that there are extraordinary pressures on Moorabool Shire to
deliver services and facilities appropriate for our diverse populations. We also
recognise that increasing rates and debt is not a sustainable way forward.
Vibrant and resilient communities with unique identities
Working with our people to deliver valued outcomes that improve community wellbeing and are economically
responsible.
Our vision
Council delivers activities and initiatives under 36 major service categories. Each contributes to the
achievement of one of the three Strategic Objectives as set out in the Council Plan for the 2013-17 years.
The following table lists the three Strategic Objectives as described in the Council Plan.
Excellence - Continually improve the way we do business.
Equity - Fair distribution of resources.
Respect - Treat others the way you want to be treated.
Integrity - Do what is right.
Practicality - Always be part of a solution.
1.3 Strategic objectives
Moorabool Shire Council 15 2014/15 Budget
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Strategic Objective Description
1. Representation and
Leadership of our
Community (cont)
We operate in a tight fiscal environment and as such we continually review the
“core business” of Council and ways to do more with less in areas that the
community expects of us.
Moorabool Shire Council is committed to delivering public value and continuously
improving and refining our service delivery. The wellbeing of our community is
paramount.
Council has developed a planning framework named Moorabool 2041 which is a
long term view of land use planning and associated physical and social
infrastructure needed to meet our communities’ needs. The building blocks of this
strategy include:
- A housing policy to assist in the zoning of our residential areas
- A small towns settlement strategy to plan the future look and feel of our smaller
towns
- An agriculture enterprise investment strategy to guide agricultural pursuits on
smaller lots, and
- A rural housing policy to guide housing associated with agriculture.
Following the completion of the Moorabool 2041 Strategy building blocks, the
Council will have a greater focus on the future needs of the community for social,
recreation, economic, environmental and physical services. This will deliver a
holistic view of the needs of the community that is evidence based, costed and
planned.
As an organisation we follow business excellence principles to improve
performance based on customer focus, stakeholder value and process
management. As a team we operate using the nine business excellence
principles and the broader Business Excellence Framework.
1. Clear direction and mutually agreed plans enable organisational alignment and
a focus on the achievement of goals.
2. Understanding what customers and other stakeholders value, now and in the
future, enables organisational direction, strategy and action.
3. All people work IN a system. Outcomes are improved when people work ON
the system and its associated processes.
4. Engaging people’s enthusiasm, resourcefulness and participation improves
organisational performance.
5. Innovation and learning influence the agility and responsiveness of the
organisation.
6. Effective use of facts, data and knowledge leads to improved decisions.
7. Variation impacts predictability, profitability and performance.
8. Sustainable performance is determined by an organisation’s ability to deliver
value for all stakeholders in an ethically, socially and environmentally responsible
manner.
9. Leaders determine the culture and value system of the organisation through
their decisions and behaviour.
In delivering our services we will provide excellent customer service using our
values, principles, policies and 2013 Customer Service Strategy.
We will value our people, providing them with learning opportunities, leadership
development, a safe and functional workplace and a sense of wellbeing.
Moorabool Shire Council 16 2014/15 Budget
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Strategic Objective Description
2. Community
Wellbeing
We will support volunteers, recognising and celebrating their vital role in
community participation and service delivery.
Council recognises the individuality, diversity and identity of each community. We
will work together to strengthen each community’s capacity to plan, develop and
implement projects that build the community they envisage.
Council will monitor and plan for the needs and aspirations of our changing
communities and opportunities to contribute to community life through enhancing
our social planning. Through increasing our understanding of the needs of our
communities, Council places itself in a better position to improve the quality of life
for the people who live, work and play/recreate in the municipality.
Council will plan, lead and facilitate high quality services to families and children,
young people, the aged, the people with disabilities and the disadvantaged. We
will work with the community to plan and deliver services and facilities that are
appropriate and affordable, reflecting the size, location and diversity of our
communities.
Council will work with other levels of government and nongovernment
organisations to increase their investment in services and facilities across the
municipality.
We will protect the peace, wellbeing and safety of our communities by the fair and
equitable management of local laws, fire prevention and animal control.
Furthermore, Council will work closely with the Municipal Association of Victoria
and state government in order to address potential wind farm issues that
communities may be affected by during and post construction phase of wind
turbine facilities. To build the economic capacity of Moorabool Shire, along with
its residential growth, Council will refocus its resources toward:
- Ensuring the local investment climate is functional for local businesses,
- Encouraging the formation of new enterprises and supporting the growth of
particular clusters of businesses, and
- Advocating and forming partnerships in delivering key infrastructure.
3. Enhanced
Infrastructure and
Natural and Built
Environment
Moorabool Shire is a peri urban area between Melbourne and Ballarat and is
experiencing significant change in response to the pressures of growth. This
provides many challenges for Moorabool given the scale of planning and
development issues it faces and the limited rate base of the municipality. In
addition, much of the municipality sits within potable water catchments and this
presents difficulties associated with development within these areas, thus
highlighting the requirement to develop a Domestic Wastewater Management
Plan.
As previously mentioned, Council in planning for the long term direction of our
communities has commenced Moorabool 2041 which is a process/framework
aimed at documenting the opportunities, pressures and challenges facing
Moorabool. This will lead to a long-term vision to guide the development of
Moorabool to retain its character and the places we love and to ensure change
provides new services and opportunities for our residents.
Moorabool Shire Council 17 2014/15 Budget
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Strategic Objective Description
Moorabool 2041 will be a key document to:
- Guide our planning scheme content to deliver sustainable development and the
protection of our agricultural, environmental and cultural resources.
- Plan for the augmentation of social and physical infrastructure and identify the
role for state and federal governments in closing the infrastructure gap.
- Ensure that as the population grows, the employment and retail offer also
grows to reduce the need to commute to Melbourne and Ballarat for work or
personal services.
At the same time, the municipality has vast rural expanses and significant existing
infrastructure and Council needs to plan, create, renew and maintain its physical
assets whilst balancing community expectations and the resource capacity of the
growing Shire. As a principle, we will renew existing assets before constructing
new assets and balance this with our communities’ needs and growth pressures.
We will manage our physical assets such as roads, bridges, drains, footpaths,
buildings, structures, community facilities, parks and sports grounds to meet a
practical level of service in the most cost effective manner for present and future
residents. We will advocate strongly for the resources, infrastructure and
strategies required to sustain a quality future for Moorabool.
We will support state and federal environmental programs to continue to raise
community awareness regarding waste minimisation, recycling and water
management.
3. Enhanced
Infrastructure and
Natural and Built
Environment (cont)
Moorabool Shire Council 18 2014/15 Budget
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2. Activities, initiatives and service performance indicators
Services
(Net Cost)
Activities Revenue
$'000
(562)
Services for which there are prescribed performance indicators to be reported on in accordance with the
Regulations are shown in bold and underlined in the below sections.
This section provides a description of the services and initiatives to be funded in the Budget for the
2014/15 year and how these will contribute to achieving the strategic objectives specified in the
Council Plan as set out in Section 1. It also includes a number of initiatives, major initiatives and
service performance indicators. The Strategic Resource Plan (SRP) is part of and prepared in
conjunction with the Council Plan. The relationship between these components of the Budget and
the Council Plan, along with the link to reporting in the Annual Report, is shown below.
2.1 Strategic Objective 1: Representation and Leadership of Our Community
To achieve our objective of Advocacy and Leadership, we will continue to plan, deliver and improve high
quality, cost effective, accessible and responsive services. The services, initiatives, major initiatives and
service performance indicators for each business area are described below.
This area, being Governance includes the Mayor, Councillors and Chief
Executive Officer, General Managers and associated support which cannot
be easily attributed to the direct service provision areas.
Governance
Source: Department of Transport, Planning and Local Infrastructure
Provide an open and accessible communication network that is accurate,
accessible, user friendly, relevant and timely.
Public Relations
and Marketing
Description
(2,336)
Moorabool Shire Council 19 2014/15 Budget
-
(Net Cost)
Activities Revenue
$'000
Initiatives
Service Indicator
Governance Satisfaction
(637)
(585)
2,679
(806)
(269)
(1,889)
Service Performance Outcome Indicators
1) Customer Request Management System Upgrade - This initiative will improve the current Customer
Request Management System and put Council in a better position to further develop online services around
Customer Service. ($0.035 million net cost)
2) Lotus Notes Migration to Exchange - Will allow Council access and use of a more widely adopted
email platform, which will improve integration with other systems and enable improved mobile device
integration for mail, calendaring and scheduling. The move to Exchange for email will also take advantage of
Councils existing investment in Microsoft Licensing. ($0.085 net cost)
To provide a range of services to the organisation that supports its
development through the effective management and expansion of
Council’s information systems and technology.
Risk Management To develop, build and identify effective management of Council’s exposure
to all forms of risk and to foster safer work places and environments within
the municipality.
Finance
Customer Service Manage service provisions to provide an open and accessible
communication network that is accurate, accessible, user friendly, relevant
and timely.
Document
Management
Electronic document management of Council’s external correspondence,
maintain an effective and efficient electronic document management
system and maintain Council’s archive program.
Financial management and accounting of Council’s finances, including
property rating and valuation services, collection of revenue and internal
support and advice to internal departments. These services will be
delivered by increasing the financial knowledge base of the whole of
Council through customer awareness, consistency and clearly defined
processes.
Satisfaction with Council decisions
(Community satisfaction rating out of
100 with how Council has performed
in making decisions in the interests
of the community)
Community satisfaction rating
out of 100 with how Council has
performed in making decisions in
the interests of the community
Performance Measure Computation
Personnel
Management
To provide, develop and implement strategies, policies and procedures
through the provision of human resource and industrial relations services,
that minimise the risk to Council.
Information
Communication
and Technology
Description
Moorabool Shire Council 20 2014/15 Budget
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Services
(Net Cost)
Activities Revenue
$'000
(774)
(20)
(1,200)
(424)
(219)
(272)
(1,028)
(299)
(171)
(320)
To achieve our objective of Community and Economic Development, we will continue to plan, deliver and
improve high quality, cost effective, accessible and responsive services. The services, initiatives, major
initiatives and service performance indicators for each business area are described below.
Aged and Disability
Services
This service provides a range of services for the aged and disabled
including day programs, meals on wheels, home and community care,
personal care, respite care, assessment and care management, volunteer
coordination, home maintenance and senior citizen clubs.
Deliver and maintain a responsive and proactive animal management
service throughout the Shire.
Review, develop and implement local laws that promote peace and good
order in Moorabool.
Legislative Responsibilities (Food Act 1984 (food safety), Health Act 1958,
Tobacco Act 1987, Residential Tenancies Act 1997 and Local Government
Act 1989). Assessments and installations of septic tanks carried out in
accordance with the Environmental Protection Act and the Septic Code of
Practice 2003. Ensure children in the Australian Childhood Immunisation
Register target group are fully immunised.
Promote innovative community projects through Council’s annual
Community Grants Program, Committees of Management operational and
developmental support and planning and funding submission support.
Includes Leisure and Pool Facilities.
Provision of fixed and rural mobile library services to key points
throughout the Moorabool area.
Early Years
Services
Fire Prevention
Animal
Management and
Local Laws
Compliance
Consult with Moorabool residents on a range of community priorities so
that their needs are understood and Council’s initiatives are promoted and
establish community reference groups that will advise Council on key
community projects.
Arts and Culture Strategy.
Arts, Culture and Events Advisory Committee.
Community Events and Celebrations Funding Program.
Events Support.
2.2 Strategic Objective 2: Community Wellbeing
Description
Arts and Culture
Community
Development
Recreation
Development
Library Services
Deliver high quality family and children’s programs and services that
support, promote and strengthen family health and wellbeing, including
Child and Family advocacy and planning, Maternal and Child Health
Service, and Occasional Care.
Ensure safety around the Moorabool Shire through fire prevention
inspections of vacant land in urban and rural living areas.
Youth Services
Environmental
Health
Enable youth within Moorabool to have a community voice and establish
programs and activities that enhance and reward them as people.
Moorabool Shire Council 21 2014/15 Budget
-
(Net Cost)
Activities Revenue
$'000
Initiatives
Service Indicator
Library Services Participation
(7)
(60)
School Crossings
5) Youth Facility Feasibility Study - This initiative will enable Council to plan more efficiently and
effectively for the provision of a potential Youth Facility in the future to meet the demand of the ongoing
population growth of the Moorabool Shire. ($0.020 million net cost)
Participation in HACC service
(Percentage of the municipal target
population that receive a HACC
service)
Participation in HACC service by
Culturally and Linguistically Diverse
(CALD) people
(Percentage of the municipal target
population in relation to CALD
people that receive a HACC service)
Performance Measure
Home and
Community Care
Participation
Computation
[Number of people that received
a HACC service / Municipal
target population for HACC
services] x100
[Number of CALD people who
receive a HACC service /
Municipal target population in
relation to CALD people for
HACC services] x100
4) Increase in Resources for Maternal and Child Health - Council will continue to be able to run a
Maternal and Child Health service that is able to meet the demands of an increase in population. ($0.042
million net cost)
Provide school crossing supervisors or staff at 13 locations in Ballan and
Bacchus Marsh within designated hours.
6) Support for Aged and Disability Home and Community Care - This increase in resources will
enable Council to provide greater support to a growing demand for Home and Community Care services.
($0.033 million net cost)
Emergency Relief Support community groups who provide help to residents in need of
emergency assistance.
Economic
Development and
Tourism
The economic development service assists the organisation to facilitate
an environment that is conducive to a sustainable and growing local
business sector and provides opportunities for local residents to improve
their skill levels and access employment. It also aims to develop strategies
to bring tourists into Moorabool Shire.
(182)
Description
Active library members
(Percentage of the municipal
population that are active library
members)
[Number of active library
members / municipal population]
x100
Service Performance Outcome Indicators
3) Increase in Resources for Youth Services - In line with the recently adopted Moorabool Youth
Strategy 2013 - 2016, this initiative will enable the Youth Services Unit to more effectively resource the growing
needs of Moorabool's youth population, progressively develop the program and events offered by Council's
youth services unit, provide stronger leadership, develop stronger networks, increase youth participation in the
community and establish high quality quick responses to new and emerging youth needs across Moorabool.
($0.026 million net cost)
Moorabool Shire Council 22 2014/15 Budget
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Service Indicator
Food Safety Health and Safety
Economic
Development
Economic activity
Animal
Management
Health and Safety
Services
(Net Cost)
Activities Revenue
$'000
Change in number of businesses
(Percentage change in the number
of businesses with an ABN in the
municipality)
665
Utilisation
Description
To achieve our objective of Community Participation, we will continue to plan, deliver and improve high quality,
cost effective, accessible and responsive services. The services, initiatives, major initiatives and service
performance indicators for each business area are described below.
Fleet Management
[Number of businesses with an
ABN in the municipality at the
end of the financial year less the
number of businesses at the
start of the financial year /
Number of businesses with an
ABN in the municipality at the
start of the financial year] x100
Animal management prosecutions
(Number of successful animal
management prosecutions)
Number of successful animal
management prosecutions
Critical and major non-compliance
notifications
(Percentage of critical and major non-
compliance notifications that are
followed up by Council)
Utilisation of pool facilities
(The number of visits to pool
facilities per head of municipal
population)
To provide fleet management services for Council’s passenger, and light
commercial vehicles, buses, trucks, and earthmoving & roadwork
machinery.
Participation in MCH key ages and
stages visits
(Percentage of children attending the
MCH key ages and stages visits)
Participation in MCH key ages and
stages visits by Aboriginal children
(Percentage of Aboriginal children
attending the MCH key ages and
stages visits)
Maternal and Child
Health
Participation
2.3 Strategic Objective 3: Enhanced Infrastructure and Natural and Built Environment
[Number of actual MCH visits for
Aboriginal children / Number of
expected MCH visits for
Aboriginal children] x100
[Number of critical non-
compliance notifications and
major non-compliance
notifications about a food
premises followed up / Number
of critical non-compliance
notifications and major non-
compliance notifications about
food premises] x100
Number of visits to pool facilities
/ Municipal population
Number of actual MCH visits /
Number of expected MCH visits]
x100
Pool Facilities
Performance Measure Computation
Moorabool Shire Council 23 2014/15 Budget
-
(Net Cost)
Activities Revenue
$'000
Waste
Management
(52)
(1,042)
(2,253)
(320)
(3,378)
(1,300)
To effectively manage Council land, property leases and licences as per
the property register.
Building
Maintenance
Road Safety This service is for the provision of street lighting and bus stop
maintenance.
This service undertakes the design and coordination of Council’s Capital
Improvement Program.
Public Toilets Cleaning and general maintenance of all public toilets.
This service prepares maintenance management programs for Council’s
property assets. These include municipal buildings, pavilions and other
community buildings.
Parks and Gardens Maintain Council's parks and gardens assets and provide facilities for our
residents for the future. Enhance and upgrade the aesthetic appearance
of Moorabool townships.
Property Asset
Management
Building Services
Infrastructure
Subdivision
Development
Provide infrastructure support services for subdivisions and developments,
whilst developing guidelines for Council to improve and provide
consistency in the planning and delivery of subdivision development.
Ensure all building permits lodged by private building surveyors are
registered in accordance with legislation, and all building department
activities are undertaken within legislative timelines.
Road and Off Road
Maintenance
To undertake maintenance to Council’s road assets to ensure they are in a
safe and serviceable condition for all users.
This includes sealed and unsealed roads, bridges, kerb and channel,
drainage, footpaths and signage.
Statutory Planning Deliver statutory planning functions of Council to ensure responsible land
use and development in Moorabool.
Environmental
Management
This service develops environmental policy, coordinates and implements
environmental projects and works with other services to improve Council’s
environmental performance.
Strategic Land Use
Planning
(41)
4,700
(150)
(1,003)
Delivery of key strategic policies and projects that assist in the long-term
development of the Shire.
(3,345)
This unit covers maintenance, collection and disposal of domestic wastes
and waste related products, litter and litter bins around the Shire and
cleaning of roads and other public places.
The unit is responsible for managing recycling, the transfer stations and
related services.Asset Management
(350)
(551)
Description
Moorabool Shire Council 24 2014/15 Budget
-
(Net Cost)
Activities Revenue
$'000
Initiatives
Service Indicator
Statutory Planning Decision Making
Roads Satisfaction
Waste Collection Waste Diversion
8) Bacchus Marsh Urban Growth Strategy - The purpose of this project is to develop an Urban Growth
Strategy for the Bacchus Marsh area to 2041, which can provide overall direction for urban growth that is
consistent with environmental constraints, community aspirations, infrastructure provision and Government
policy. ($0.050 million net cost)
9) Support in Natural Resource Management - This initiative will improve the delivery of the current
programs and will see a decrease in the density and cover of weeds and rabbits on roadsides and Councils
managed reserves. It will also ensure that the program better aligns with Community needs and expectations
around weed and rabbit control, improve the visual amenity of many Council managed roads and reserves and
in some cases reduce fire risk of roadsides and reserves. ($0.044 million net cost)
10) Tree Strategy - The aim of the strategy would be to maximise the benefits of trees to the community
and minimise the risks associated with them. Some of the primary objectives will be to establish a tree
planting, replacement and establishment program whilst closely monitoring the tree network to ensure their
continued good health. The community will have input into the strategy which will shape future tree
management practices. ($0.037 million net cost)
Description
Spatial maintenance of all land parcels.Geographical
Information
Services(129)
7) Planning for the Future of our Small Towns - The objective of the Strategy will be to address the key
issues surrounding further development within the rural areas of the Shire including the cumulative impacts of
potable water, housing density, infrastructure servicing requirements and economic arguments for rural activity
and rural living. The outputs from the strategy will include an assessment of the future growth potential of the
small towns and settlements including what water and sewerage infrastructure would be required to support
the identified potential growth. Consultation with the community will be a key component. ($0.075 million net
cost)
Kerbside collection waste diverted
from landfill
(Percentage of garbage, recyclables
and green organics collected from
kerbside bins that is diverted from
landfill)
[Weight of recyclables and green
organics collected from kerbside
bins / Weight of garbage,
recyclables and green organics
collected from kerbside bins]
x100
Service Performance Outcome Indicators
Performance Measure Computation
Council planning decisions upheld at
VCAT
(Percentage of planning application
decisions subject to review by VCAT
and that were not set aside)
[Number of VCAT decisions that
did not set aside Council’s
decision in relation to a planning
application / Number of VCAT
decisions in relation to planning
applications] x100
Satisfaction with sealed local roads
(Community satisfaction rating out of
100 with how Council has performed
on the condition of sealed local
roads)
Community satisfaction rating
out of 100 with how Council has
performed on the condition of
sealed local roads.
Moorabool Shire Council 25 2014/15 Budget
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Net Cost
(Revenue) Expenditure Revenue
$’000 $’000 $’000
Representation and Leadership of Our Community 4,403 8,933 4,530
Community Wellbeing 4,975 8,931 3,956
8,549 17,783 9,234
17,928 35,647 17,719
8,230
26,157
27,959
2,893
30,852
4,695
# Other non-attributable is the sum of Depreciation, Borrowing Costs and Interest Income
2.7 Performance Statement
Surplus for the year
Other non-attributable #
Deficit before funding sources
Rates & charges
Capital grants
The service performance indicators detailed in the preceding pages will be reported on within the Performance
Statement which is prepared at the end of the year as required by section 132 of the Act and included in the
2014/15 Annual Report. The Performance Statement will also include reporting on prescribed indicators of
financial performance (outlined in section 8) and sustainable capacity, which are not included in this budget
report. The full set of prescribed performance indicators are audited each year by the Victorian Auditor
General who issues an audit opinion on the Performance Statement. The major initiatives detailed in the
preceding pages will be reported in the Annual Report in the form of a statement of progress in the report of
operations.
2.8 Reconciliation with budgeted operating result
Total funding sources
Funding sources:
Total activities and initiatives
Enhanced Infrastructure and Natural and Built
Environment
Moorabool Shire Council 26 2014/15 Budget
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3. Budget influences
In preparing the Budget it has been necessary to make a number of assumptions about the
internal and external environment within which Council operates.
3.1 Snapshot of Moorabool Shire Council
Moorabool Shire is a fast-growing semi-rural municipality nestled between Melbourne, Geelong and Ballarat.
It offers residents picturesque and friendly surrounds with the vibrancy of an active, growing community.
The Shire’s landscape provides an array of living options. Residents can enjoy an urban lifestyle in towns like
Bacchus Marsh (45km west of the Melbourne CBD) and Ballan (70km west of the Melbourne CBD) or take
advantage of Moorabool’s small towns and hamlets, rural open spaces and natural surrounds.
A stunning Shire spanning more than 2,110 square kilometres, Moorabool is made up of 64 localities,
hamlets and towns. More than 74% of the Shire comprises of water catchments, state forests and national
parks. Moorabool boasts breathtaking landscapes, national parks, forests, gorges, mineral springs and
tourism attractions. Some of its key attractions include the Wombat State Forest, Brisbane Ranges National
Park, Lerderderg State Park, Werribee Gorge State Park and the Bacchus Marsh Avenue of Honour.
The district was settled by Europeans between 1830 and 1850 and the character of our towns and
surrounding areas reflect this era.
Gold was discovered in the region and a timber industry quickly developed. The availability of water attracted
many people and resulted in pastoral and agricultural development led by pioneers such as Sir William Henry
Bacchus, who in 1834 settled on the fertile soil of what is now the township of Bacchus Marsh.
Moorabool Shire is positioned along the major road and rail transport corridors between Melbourne and
Adelaide.
Moorabool’s eastern boundary is located just 40km west of Melbourne’s CBD and extends westwards to the
City of Ballarat municipal boundary. The Shire straddles Victoria’s Western Highway and has excellent
transport access to Melbourne, Ballarat and Geelong.
Bacchus Marsh is equi-distant to Melbourne and Avalon airports and close to the sea ports of Geelong and
Melbourne.
Population
Moorabool Shire is a popular tree change destination, growing as fast as any other local government area in
inland regional Victoria. The official population of Moorabool Shire in 2014 is 31,000. This is estimated to
grow to 32,700 by the end of 2016. More than half the population lives in Bacchus Marsh and surrounds
(approximately 19,032). The Shire’s second largest population can be found in and around Ballan (6,534).
The remaining population is distributed throughout the large number of small towns, hamlets and farming
areas within the Shire. The majority of people who relocate to Moorabool Shire are young families seeking a
semi-rural lifestyle. Moorabool’s demographic reflects this trend.
Population Growth
By 2016, Moorabool’s population was projected to increase to 32,700 at an average annual growth rate of
2.1%. However the latest Shire population figures from the ABS indicate that Moorabool’s population grew by
3.3% last financial year. Based on this trend, Moorabool’s population may reach 32,700 much sooner. When
considering future growth of Moorabool Shire, Council has identified three key residential locations where the
majority of that growth will occur. These locations – Bacchus Marsh, Ballan and Gordon – already have
established infrastructure to accommodate new growth. The estimated population for the Shire by 2036 is
48,718. The majority of growth during this period will come from the new estates in Maddingley, which are
forecast to increase.
Moorabool Shire Council 27 2014/15 Budget
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Demographic
Moorabool Shire has a higher proportion of people in the younger age groups (0 to 17 years) as well as a
higher proportion of people in the older age groups (60+ years) when compared to Greater Melbourne.
Overall, 25.7% of the population was aged between 0 and 17, and 19.3% were aged 60 years and over,
compared with 22.2% and 18.2% respectively for Greater Melbourne.
Births
Despite an ageing population, approximately 300 babies have been born each year since 2009. In the
2013/14 financial year 347 babies were born in the municipality. (Source: Maternal and Child Health
database).
Housing
The number of homes is increasing. In 2011, there were 11,560 dwellings, compared to 10,172 dwellings in
2006. The growth in housing stock has been in line with population growth, as the average household size
has remained relatively constant.
In 2011, there were 10,797 separate houses in the area, 609 medium density dwellings, and 23 high density
dwellings.
Analysis of the types of dwellings in Moorabool Shire in 2011 shows that 93.4% of all dwellings were
separate houses; 5.3% were medium density dwellings, and 0.2% were high density dwellings, compared
with 71.1%, 21.1%, and 7.2% in the Greater Melbourne respectively.
In 2011, a total of 90.2% of the dwellings in Moorabool Shire were occupied on Census night, compared to
91.2% in Greater Melbourne. The proportion of unoccupied dwellings was 9.6%, which is larger compared to
that found in Greater Melbourne (8.6%).
Affordability and Liveability
Moorabool offers diverse living options. Bacchus Marsh, Ballan, Gordon and the smaller Shire townships
offer a vital array of community infrastructure, established social and sporting networks, combined with the
charm and character only experienced in rural areas.
Bacchus Marsh ranks in the top three of regional Australia’s housing markets that are likely to be the best
suited for family living. This national ranking was based on a range of factors including house prices, typical
block size, average number of bedrooms, expected capital gains and a range of proximity attributes involving
schools, health care facilities, child care centres and retail facilities. The analysis also included
socioeconomic wellbeing measures. Maintaining liveability for families is an important element for Council.
Bacchus Marsh was the first area in regional Victoria to receive the National Broadband Network’s super high-
speed Fibre to the Premises (FTTP) service, with further FTTP rollouts planned. Fixed wireless and satellite
NBN services are already available in parts of Western Moorabool.
Education and occupation
In the past decade, North-Western Victoria, which includes Moorabool Shire, has experienced a steadily
improving retention of students from Year 10 to Year 12, up from 85.6% in 2004 to 92.0% in 2013. (Source:
Department of Education and Training, Summary Statistics Victorian Schools).
People in Moorabool Shire are also becoming better educated. The proportion of residents who have non-
school qualifications is increasing. Many more residents in 2011 had completed a formal qualification than
(Bachelor or higher degree; Advanced Diploma or Diploma; or Vocational qualifications), in 2006 (42.2%
compared with 36.9%). (Source: Australian Bureau of Statistics, Census of Population and Housing).
In 2011, 7,091 (53.2%) of Moorabool Shire’s working residents travelled outside of the area to work. Of those
who lived and worked in Moorabool the majority worked in Bacchus Marsh (22.5%) followed by Ballan
(6.6%). (Source: Australian Bureau of Statistics, Census of Population and Housing).
Moorabool Shire Council 28 2014/15 Budget
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Business Profile
Traditional economic drivers such as agriculture, timber, wool and beef production and mineral, stone and
water extraction remain extremely important to Moorabool’s economy.
Residential growth, construction, retail and service industries, light manufacturing and tourism are emerging
factors of growth.
The Shire’s growing population provides tremendous opportunities for business growth and investment. The
excellent services we provide, and those planned for the future, will see Moorabool become an even more
attractive prospect.
The key drivers of Moorabool’s regional economy in terms of regional exports, employment, value added and
local expenditure on goods and services are: Agriculture, Forestry and Fishing (Output $131.541 million);
Construction (Output $196.656 million); Health Care and Social Assistance ($78.179 million); and Education
and Training ($67.714 million). The total output, based on gross revenue generated by businesses and
organisations within Moorabool, is estimated at $1,442.412 million (REMPLAN 2014, based on 2011 Census
data).
Between the last two Census periods the employment base of Moorabool Shire changed substantially. The
most significant shifts in employment by industry sector included a lower share of employment in agriculture,
forestry and fishing (-84 persons) manufacturing (-142 persons); and a higher proportion of jobs in
construction (+396 persons), health care and social assistance (+251 persons), public administration and
safety (+177 persons) and accommodation and food services (+166 persons).
An analysis of the jobs held by the resident population in Moorabool Shire in 2011 showed the top ranking
industry sectors were:
- Construction (1,639 people or 12.3%)
- Health care and social assistance (1,397 people or 10.5%)
- Retail (1,307 people or 9.8%)
- Manufacturing (1,248 people or 9.4%)
- Education and training (1,115 people or 8.4%)
- Transport, postal and warehousing (1,018 people or 7.6%)
- Public administration and safety (935 people or 7.0%)
- Accommodation and food services (682 people or 5.1%)
- Professional, scientific and technical services (674 people or 5.1%)
- Agriculture, forestry and fishing (580 people or 4.4%)
More industry and commercial development is required to meet the rising population. The existing industrial
estates, such as Ballan Industrial Estate and the Kennedy Place Industrial Estate in Bacchus Marsh are near
capacity. To meet this need, Council is developing a plan for economic development over the next 10 years
and investigating the future demand and supply for industrial land and how potential development locations
like Parwan and Ballan will attract investment and cater for job growth.
Moorabool Shire is well positioned to capture new business opportunities from the digital economy with the
early rollout of the National Broadband Network which delivers faster, more reliable broadband speeds than
that available in metropolitan areas.
Budget implications
As a result of the Moorabool’s demographic profile there are a number of budget implications in the short and
long term as follows:
With increasing numbers of younger people in the Shire, the budget has a number of new initiatives
targeted at younger people including:
- The Expansion of Youth Services ($0.026 million)
- A Feasibility Study for a new Multi Purpose Youth Facility ($0.020 million)
- A Feasibility Study for a new Early Years Facility in Ballan ($0.010 million)
- The Expansion of Maternal and Child Health Service ($0.042 million)
Over 20% of ratepayers are entitled to the pensioner rebate. As pensioners are often asset rich but
income poor, the adoption of significant rate increases has a real impact on the disposable income of a
significant proportion of our community. Council has hardship provisions in place but these can impact on
cash balances when large volumes of ratepayers are involved.
Moorabool Shire Council 29 2014/15 Budget
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3.2 External influences
In preparing the 2014/15 Budget, a number of external influences have been taken into consideration
because they are likely to impact significantly on the services delivered by Council in the budget period.
These include:
Consumer Price Index (CPI) increases on goods and services is estimated at 2-3% per annum
(Source: Reserve Bank of Australia Statement on Monetary Policy – February 2014);
Population growth will continue to generate an increase in demand for Council Services. By way of
example, an increase in births and enrolments for Councils Maternal and Child Health Service will require
additional investment in service delivery to keep up with the growth in demand.
State and Federal governments budget deficits resulting in lower levels of grants and appropriations for
both services and infrastructure delivery.
3.3 Internal influences
As well as external influences, there were also a number of internal influences arising from the 2013/14 year
which have had a significant impact on the setting of the Budget for 2014/15. These include:
A desire to improve Council’s underlying position over the next five years;
A need to focus on the level of funds provided for renewal and maintenance of existing assets; and
With Council’s implementation of the Australian Business Excellence Framework there is a focus of
continuous improvement and core business review.
3.4 Budget principles
In response to these influences, guidelines were prepared and distributed to all Council officers with budget
responsibilities. These guidelines set out the key budget principles upon which the officers were to prepare
their budgets. The principles included:
Existing fees and charges to be increased by 6%. However, a significant proportion of Council’s fees
and charges are statutory and therefore set through legislation and regulation and Council’s capacity to
increase these fees and charges is restricted;
Grants to be based on confirmed funding levels;
Salaries and wages to be increased in line with Year 2 of the current Enterprise Bargaining Agreement
(EBA);
New revenue sources to be identified where possible; and
New initiatives or new employee proposals which are not cost neutral to be justified through a business
case.
3.5 Long term strategies
The budget includes consideration of a number of long term strategies and contextual information to assist
Council to prepare the Budget in a proper financial management context. These include a Strategic
Resource Plan for 2014/15 to 2017/18 (section 8.), Rating Information (section 9.) and Other Strategies
(section 10.) including borrowings, infrastructure and service delivery.
Moorabool Shire Council 30 2014/15 Budget
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4. Analysis of operating budget
Forecast
Actual Budget Variance
Ref 2013/14 2014/15
$’000 $’000 $’000Total income 4.2 48,743 47,931 (812)
Total expenses 4.3 (43,372) (43,236) 136
5,371 4,695 (676)
4.2.7 (4,595) (1,993) 2,602
(4,500) (4,500) 0
4.2.4 (115) (185) (70)
(3,839) (1,983) 1,856
4.2 Income
Forecast
Actual Budget Variance
Income Types Ref 2013/14 2014/15
$’000 $’000 $’000
Rates and charges 4.2.1 26,059 27,959 1,900
Statutory fees and fines 4.2.2 459 536 77
User fees 4.2.3 1,461 1,748 287
Contributions - cash 4.2.4 115 185 70
Contributions - non-monetary assets 4.2.5 4,500 4,500 0
Grants - operating 4.2.6 9,263 8,599 (663)
Grants - capital 4.2.7 5,495 2,893 (2,602)
Other income 4.2.8 965 981 16
Interest 4.2.9 427 530 103
Total income 48,743 47,931 (812)
This section analyses the operating budget including expected income and expenses of the
Council for the 2014/15 year.
4.1 Budgeted income statement
4.1.1 Adjusted underlying deficit ($1.856 million decrease)
Adjusted underlying surplus (deficit)
The adjusted underlying result is the net surplus or deficit for the year adjusted for non-recurrent capital
grants, non-monetary asset contributions, and capital contributions from other sources. It is a measure of
financial sustainability and Council’s ability to achieve its service delivery objectives as it is not impacted by
capital income items which can often mask the operating result. The adjusted underlying result for the
2014/15 year is a deficit of $1.983 million which is a decrease of $1.856 million from the 2013/14 year. In
calculating the adjusted underlying result, Council has excluded grants received for capital purposes which
are non-recurrent and capital contributions from other sources. Contributions of non-monetary assets are
excluded as the value of assets assumed by Council is dependent on the level of development activity each
year.
Surplus (deficit) for the year
Grants – capital non-recurrent
Contributions - non-monetary assets
Capital contributions - other sources
Moorabool Shire Council 31 2014/15 Budget
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Source: Appendix A
4.2.1 Rates and charges ($1.900 million increase)
General rate income will be increased by 5.0% or $1.900 million over 2013/14 to $27.959 million.
Supplementary rates are forecast to decrease by $0.015 million from 2013/14 to $0.408 million. Section 9.
“Rating Information” includes a more detailed analysis of the rates and charges to be levied for 2014/15.
Information on rates and charges specifically required by the Regulations is included in Appendix B.
Rates & charges
Stat fees User fees Contrib - cash
Contrib - non-cash
Grants - op.
Grants - cap.
Other Interest
0
10,000
20,000
30,000
40,000
$'000
Income
Forecast 13/14 Budget 14/15
Rates and charges
58% Statutory fees
and fines 1%
User fees 4%
Contributions - cash
0%
Contributions - non-
monetary assets 10%
Grants - operating
18%
Grants - capital
6%
Other income 2% Interest
1%
Budgeted income 2014/15
Moorabool Shire Council 32 2014/15 Budget
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4.2.6 Grants - operating ($0.663 million decrease)
Operating grants include all monies received from State and Federal sources for the purposes of funding the
delivery of Council’s services to ratepayers and contributions from other parties towards property
development costs. Overall, the level of operating grants has decreased by 7.2% or $0.663 million compared
to 2013/14. A list of operating grants by type and source, classified into recurrent and non-recurrent, is
included below.
4.2.2 Statutory fees and fines ($0.077 million increase)
A detailed listing of statutory fees is included in Appendix D.
Includes statutory fees that relate to fees and fines levied in accordance with legislation and includes animal
registrations, Health Act registrations, parking fines and other local law infringements. Increases in statutory
fees are made in accordance with legislative requirements.
Statutory fees are forecast to increase by 16.8% or $0.077 million compared to 2013/14. The main increases
relate to Parking Infringements ($0.030 million), Statutory Planning Fees $0.015 million, and Animal
Infringements ($0.014 million).
4.2.3 User fees ($0.287 million increase)
User charges are projected to increase by 19.6% or $0.287 million over 2013/14. The main areas
contributing to the increase are fees for Asset Protection ($0.049 million), brokerage fees in Aged and
Disability Services ($0.062 million), Septic Tanks ($0.040 million), Subdivisions ($0.25 million), Home Care
($0.020 million), and Building Fees ($0.018 million). In addition, Council plans to increase user charges for all
areas by 6.00% over the budget period to maintain parity between user charges and the costs of service
delivery.
These contributions relate to monies paid by developers in regard to Public Open Space.
Contributions are projected to increase by $0.070 million or 60.9% compared to 2013/14 due mainly to the
completion of a number of major property developments within the municipality during the 2013/14 year.
A detailed listing of fees and charges is included in Appendix D.
4.2.4 Contributions - cash ($0.070 million increase)
User charges relate mainly to the recovery of service delivery costs through the charging of fees to users of
Council’s services. These include use of leisure, entertainment and other community facilities and the
provision of human services such as family day care and home help services. In setting the Budget, the key
principle for determining the level of user charges has been to ensure that increases recognise equity issues
and market levels.
4.2.5 Contributions - non-monetary assets (no change)
These contributions relate to assets transferred to Council for works done by developers on new subdivisions
within the Shire. These assets include Road Infrastructure, Footpaths, and Drainage.
Moorabool Shire Council 33 2014/15 Budget
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Forecast
Actual Budget Variance
2013/14 2014/15
$’000 $’000 $’000
5,592 5,824 232
51 0 (51)
1,697 1,755 58
49 51 2
219 223 5
45 45 0
356 352 (4)
0 16 16
Immunizations 12 13 1
40 40 0
8,060 8,320 260
0 0 0
249 25 (224)
11 0 (11)
131 0 (131)
Valuation Services 0 80 80
Healthy Communities 140 0 (140)
Environment 140 0 (140)
261 0 (261)
Community Development 27 0 (27)
244 174 (70)
1,203 280 (923)
9,263 8,599 (663)
Operating Grant Funding Type and Source
Recurrent - Commonwealth Government
Victorian Grants Commission
Family Day Care
Recurrent - State Government
Aged and Disability
School Crossing Supervisors
Library
Maternal and Child Health
Community Safety
Early Years Services
Early Years Services
Community Safety
Capital grants include all monies received from State, Federal and community sources for the purposes of
funding the capital works program. Overall the level of capital grants has decreased by 47.4% or $2.602
million compared to 2013/14. Section 6. “Analysis of Capital Budget” includes a more detailed analysis of the
grants and contributions expected to be received during the 2014/15 year. A list of capital grants by type and
source, classified into recurrent and non-recurrent, is included below.
Total Grants - Operating
4.2.7 Grants - capital ($2.602 million decrease)
Youth Services
National Broadband Network
Aged and Disability
Total recurrent grants
Non-recurrent - Commonwealth Government
Non-recurrent - State Government
Strategic Planning Projects
Total non-recurrent grants
Moorabool Shire Council 34 2014/15 Budget
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Forecast
Actual Budget Variance
2013/14 2014/15
$’000 $’000 $’000
900 900 0
0 0 0
900 900 0
Flood Recovery 3,108 0 (3,108)
92 185 93
30 60 30
Recreational and Leisure 292 225 (67)
19 35 16
1,054 1,488 434
4,595 1,993 (2,602)
5,495 2,893 (2,602)
Forecast
Actual Budget Variance
Expense Types Ref 2013/14 2014/15
$’000 $’000 $’000
Employee costs 4.3.1 16,325 17,227 902
Materials and services 4.3.2 16,375 15,175 (1,200)
4.3.3 9,488 8,120 (1,368)
Finance costs 4.3.4 845 639 (206)
Other expenses 4.3.5 468 442 (27)
4.3.6 (129) 1,634 1,762
Total expenses 43,372 43,236 (136)
Parks and Open Space
Total non-recurrent grants
Total Grants - Capital
Capital Grant Funding Type and Source
Buildings
Roads
Footpaths
Non-recurrent - State Government
Other income relates to a range of items such as lease income of Council properties, royalties,
reimbursements, and other miscellaneous income items.
Other income is forecast to increase by 1.7% or $0.016 million compared to 2013/14.
4.2.9 Interest ($0.103 million increase)
Interest revenue relates to interest received on investments and rate arrears. Interest revenue is forecast to
increase by $0.103 million compared to 2013/14. This is due to an expected increase in the amount of cash
assets held during 2014/15 compared to 2013/14.
4.2.8 Other income ($0.016 million increase)
Recurrent - Commonwealth Government
Roads to Recovery
Recurrent - State Government
Total recurrent grants
Non-recurrent - Commonwealth Government
4.3 Expenses
Net loss on disposal of property, infrastructure,
plant and equipment
Depreciation
Moorabool Shire Council 35 2014/15 Budget
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Source: Appendix A
Employee costs Materials and services
Depreciation
Finance costs Other expenses
Net loss on disposal
-1,000
4,000
9,000
14,000
19,000
$'000
Expenses
Forecast 13/14 Budge